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Skills Edge Team
The frequency of extreme weather events causing billion-dollar losses has more than tripled in the United States over the past five years, jumping from an average of seven events annually to 23.
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Is There a Competitive Advantage Through Education? How The Norfolk & Dedham Group Drives Continuing Professional Development
By Skills Edge TeamProfessional development and education are not nice-to-have perks anymore; they are a competitive advantage for you, your employees, and your organization at large. In fact, 70% of employees say learning improves their sense of connection to their organization. Organizations that invest in education will be able to future-proof their workforce and attract, prepare, and retain the next generation of risk management and insurance leaders.
We had the opportunity to speak with Joel P. Murray, CPCU, Board Chair, President, and CEO of The Norfolk & Dedham Group (N&D) as well as Michael J. Tufts, CPCU, Senior Vice President, People & Administration of N&D®. They shared how their extensive professional development efforts have been a competitive differentiator for their organization, how N&D leverages The Institutes Designations to drive career development pathways, and why their clients ultimately benefit from these initiatives.
N&D has a unique learning and development culture that ensures employees have the knowledge and skills they need to be successful in their current and future roles.
“Professional development is a strategic differentiator for us as we demonstrate to our employees we care about their future,” Murray commented. “Our partnership with The Institutes signals to candidates that we're serious about their growth. Internally, designation holders have an advantage over those who do not pursue [designations] as a result of their elevated subject matter expertise.”
This advantage comes in the form of streamlined paths to career advancement, as further explained by Murray:
“Our career development pathways are deeply embedded in our culture. We've designed structured progression models for underwriting, claims, and project management roles that emphasize continuous education, including CPCU® and other designations.”
In practice, Michael Tufts broke down what a career pathway might look like for a Commercial Lines Underwriter starting at N&D.
“When it comes to our talent practices, we’ve recently developed career pathways for our Commercial Lines Underwriters, from Day 1 through Year 7. There are two pathways: with CPCU and without CPCU. If employees earn their CPCU, they'll be able to go from an Associate Commercial Lines Underwriter, to a Commercial Lines Underwriter, to a senior role in four years. Without earning CPCU, it will take about 7 years. CPCU is so valuable from a technical knowledge standpoint that employees need a lot more on-the-job training and skill development to fill the knowledge gap.”
N&D’s professional development support extends far beyond promotion criteria, however. They cover the costs of employees’ course materials and even offer incentives for earning Institutes Designations.
“We pay for all the materials and exams employees need for every Institutes Designation,” said Tufts. “Physical books, online materials, their first exam attempt, everything. When they earn any designation, we award them $1,000. If they earn their CPCU we give them $3,500 and pay for them to attend the conferment conference.”
Thanks to their extensive training programs, N&D has been able to embrace knowledge and skills-based recruiting, which allows them to hire from a wider pool of candidates who may not have worked in risk management and insurance before, but have the transferable skills needed to grow their knowledge in entry-level positions.
As Tufts put it, “We’ve had to shift from a competency-and-experience-based recruiting model to a skills-based model. For an entry level job, like Auto Claims Examiner, we’re recruiting for skills. For example, somebody who has been a server in a restaurant and can communicate effectively with people, handle stress, and has good customer service skills will likely do well in that role. Those hospitality skills really lend themselves to what we’re looking for. Ultimately, that means we’re bringing a lot of new people into the company who have no domain knowledge in insurance. We created the learning journey to help address this gap.”
Next, once these new hires start, N&D quickly sets them on their learning journey.
“During an employee’s first year, 11-12 subject matter experts from within the company present a wide range of topics that are relevant to a mutual insurance company,” explained Tufts. “Two-hour sessions, once a month, over the course of a year. Alongside that, each employee will also be working toward their Associate in Insurance (AINS®) designation.
“By the end of the year, every new employee has achieved at least a baseline of domain knowledge of our industry, has earned AINS, and is ready to enter a specialized learning track. Then if they want to work towards their Associate in Claims (AIC™), they move onto track A. If they want to earn CPCU, they move onto track B. And so forth. We always try to leverage existing expertise and credit earned from The Institutes Designations across the organization.”
The Institutes Designations’ CPCU® is central to N&D’s professional development programs because it’s regarded as the leadership standard for risk management and insurance.
Murray stated, “At N&D, we view the CPCU designation as a cornerstone of professional excellence. Employees who earn their CPCU demonstrate not only technical mastery of property and casualty insurance but also a commitment to ethical standards and continuous learning. This translates into stronger underwriting decisions, better risk assessment, and improved profitability. They become subject matter experts and trusted resources for their teams, which elevates the entire organization.”
Understanding that earning one’s CPCU is a huge accomplishment, backed by years of hard work and dedication, N&D makes sure to recognize and celebrate their CPCUs. In addition to awarding completers $3,500 and paying for them to attend the conferment conference, they also post their accomplishments on social media and in the office.
“We have an entire wall in our office dedicated to the diplomas of all CPCUs in our organization," Tufts shared. “It really is a wall of honor for our employees—26 CPCUs in a company of 160. And we don't just recognize them on the wall. We recognize them during our annual town hall meeting, create a LinkedIn post celebrating them, and post their accomplishment around the office. It's a big deal and we want to acknowledge that.”
According to Murray, robust employee training and learning experiences provide N&D’s clients with an overall better experience on just about every front.
“Our mission is to provide financial security and peace of mind to our policyholders,” said Murray. “That starts with having knowledgeable, empowered employees. Through CPCU and other learning programs, our staff gain the technical expertise and business acumen needed to deliver exceptional service. Clients benefit from faster, more accurate underwriting, responsive claims handling, and personalized service. Our agents appreciate working with professionals who understand the nuances of coverage and risk. Ultimately, our investment in people translates into trust, loyalty, and long-term relationships with our agency partners, which serve as the foundation of everything we do.”
The bottom line: If you’re looking to build or revamp learning and development programs for your organization, The Institutes Knowledge Group can help! Reach out to our team at Sales@TheInstitutes.org for advice and best practices on building a culture of continuing professional development and lifelong learning.
Our Skills Edge Team brings together insurance researchers and subject matter experts dedicated to advancing knowledge in risk management and insurance. Backed by more than 115 years of experience as a not-for-profit, the team at The Institutes is committed to educating, elevating, and connecting people and ideas to create a more informed, resilient world.
The Institutes Launch a New Catastrophe Risk Designation as Extreme Weather Losses Triple
By Skills Edge TeamThe frequency of extreme weather events causing billion-dollar losses has more than tripled in the United States over the past five years, jumping from an average of seven events annually to 23. This dramatic escalation in catastrophe risk has prompted The Institutes Knowledge Group to develop a comprehensive new professional designation specifically focused on both natural and human-caused catastrophe risks and resilience.
Risk & Insurance, which is affiliated with The Institutes, recently spoke with Adam Carmichael, CPCU, the President of The Institutes Knowledge Group, about a new Institutes Designation. You can read the original article on the Risk & Insurance website now. The Institutes Designations’ Associate in Catastrophe Risk and Resiliency™ (ACRR™) addresses the urgent need for specialized catastrophe risk management expertise.
“The primary motivation for creating this designation was to address the growing and evolving threat of catastrophe risk and help both people and companies become more resilient in the face of those risks,” said Carmichael. “Catastrophes can result in physical and financial losses and often impact entire communities.”
The new Associate in Catastrophe Risk and Resiliency™ (ACRR™) designation, now available, represents one of the few programs in the risk management and insurance space comprehensively addressing both natural and human-caused catastrophe risks. The program was developed in response to clear demand, with The Institutes Knowledge Group’s advisory board providing immediate and positive confirmation that professional development in this area was critically needed.
Risk management and insurance faces unprecedented challenges from catastrophe risks that continue to evolve in both frequency and severity. Natural disasters have become more intense, while human-caused catastrophes like cyber-attacks have expanded in scope, creating intricate interdependencies that cause ripple effects across industries and communities.
“When you combine all the various catastrophes, this represents one of the largest risks the risk management and insurance sectors face, affecting a broad range of professionals across the field,” Carmichael said. The designation was specifically created to provide risk professionals with the skills needed to implement holistic risk mitigation and prevention strategies.
The program’s focus also extends beyond simply responding to catastrophes after they occur. “This designation was created to provide risk professionals with the skills needed to implement holistic risk mitigation strategies, strengthen resilience, and apply insurance and reinsurance solutions while looking beyond financial protection to predict and prevent potential losses,” Carmichael explained.
In developing the ACRR designation, The Institutes Knowledge Group employed a rigorous methodology drawing from multiple sources to ensure thoroughness and practical applicability. The development process began with comprehensive research into catastrophe risk, examining the various areas within this complex field.
“We pull from a variety of sources because what we’re trying to build is a holistic framework for managing both natural and human-caused risks,” Carmichael said. This research was then combined with input from subject matter experts who work directly in the risk management and insurance sectors, ensuring the program addresses real-world challenges that professionals face daily.
The goal throughout the development process was to design courses that help professionals build practical, applicable skills for their jobs. “These skills enable them to solve problems, develop strategies for handling complex risks, and ultimately work to mitigate, predict, and prevent catastrophes,” Carmichael noted.
The ACRR designation consists of four required courses that can be completed in six to nine months, with each individual course typically taking four to six weeks. The program includes:
All courses are delivered in a completely digital format, featuring scenario-based learning experiences that reflect real-world situations. “Each course has a related exam where participants can demonstrate application of the concepts covered, and these exams are also digital and can be taken anywhere,” Carmichael said. There is also a free sample course for those who want to experience the program format before enrolling.
The designation applies to a wide range of risk and insurance professionals, with particular relevance for those in specific roles. “Specifically, anyone who wants to better understand catastrophe risk and how to build resiliency would benefit, including risk managers, brokers who want to ensure their clients are protected against catastrophe risk, and underwriters who deal with this risk in their daily work,” Carmichael explained.
Professionals in the reinsurance sector should especially consider this designation, as catastrophe risk plays a critical role in that area. Additionally, those working in Insurtech could benefit from a better understanding of the risks that technology may be able to help predict and prevent.
The program equips professionals to build frameworks for assessing and managing risk that remain relevant even as catastrophe risks evolve and change over time. Participants learn to employ effective catastrophe risk management techniques and improve cross-organizational communication by raising awareness, fostering preparedness, better translating complex data into understandable information, and building a culture of vigilance.
“Anyone who cares about their organization’s bottom line should be interested in this,” Carmichael said, emphasizing the broad applicability of the skills developed through the program.
Looking ahead, the importance of education in catastrophe risk management cannot be overstated. “Catastrophe risk can be devastating. The more we understand these risks and are able to plan and build strategies to predict, prevent, and mitigate them, the more significant the difference we can make,” Carmichael said.
While some catastrophic events are inevitable, there are proactive measures that can be implemented to improve outcomes. “Education in this space is crucial because while some of these events are inevitable, there are proactive measures we can take. When we implement these measures in advance, it creates better outcomes for everyone involved,” Carmichael noted.
With more than 115 years of experience as a not-for-profit committed to educating, elevating, and connecting those interested in risk management and insurance, The Institutes have positioned this new designation to help create a more informed and resilient world in the face of growing catastrophe risks.
To learn how your organization can turn catastrophe risk into readiness, explore The Institutes Designations’ NEW Associate in Catastrophe Risk and Resiliency™ (ACRR™) today.
Our Skills Edge Team brings together insurance researchers and subject matter experts dedicated to advancing knowledge in risk management and insurance. Backed by more than 115 years of experience as a not-for-profit, the team at The Institutes is committed to educating, elevating, and connecting people and ideas to create a more informed, resilient world.
The Value of Investing in Professional Development: Q&A with Pennsylvania Lumbermens Mutual
By Skills Edge TeamOffering professional development is no longer a nice-to-have-perk, it’s a strategic competitive advantage that drives everything from bottom-line results to employee recruitment and retention. In fact, 94% of employees say they would stay at a company longer if it invested in their career development, according to LinkedIn’s Workplace Learning Report.
The Institutes had the opportunity to speak to board member and Pennsylvania Lumbermens Mutual Insurance Co. President and CEO John Smith, CPCU, ARM, ARe, AIS about his organization’s investment in professional development. In the Q&A that follows, Smith shares PLM’s viewpoint on the value of learning and development, the measurable outcomes they've seen, and why they’ve made education a cornerstone of their talent strategy.
John Smith: Our commitment to education and development is not based on a desire to hang up a lot of certificates; it stems from the belief that the company with the best people, at the end of the day, wins.
We believe the true value of an insurance program lies not in its price, but in the caliber of professionals who deliver exceptional expertise and service. Furthermore, we are committed to continuous learning, recognizing that without it, the competition will inevitably close the gap.
JS: Participating in our education program is mandatory for all employees (yes, even me). We’re proud to say that 100% of our team has engaged in continuing education, with some returning to formal learning for the first time in years.
Last year, our team of approximately 170 people took 196 Institutes designation exams. As a result, we earned 53 Institutes Designations, including several who earned CPCU®. Members of our senior leadership team are among those who completed the CPCU designation, including one member who started their CPCU program in 1986. I’ll never forget the emotion in his voice when he called, in tears, to share that he had passed the final part of the designation.
JS: We do weekly in-house training sessions, provide personal employee coaches, and we send people to external classes run by reinsurers, NAMIC, APCIA, and many of our industry partners.
Our leadership training is conducted by the Center for Creative Leadership. This allows our people to engage with professionals outside the insurance industry, helping to broaden their perspectives and strengthen their leadership capabilities. More recently, we’ve also begun working with the International Cooperative and Mutual Insurance Federation (ICMIF) to provide our leaders with valuable international experience.
In the right circumstances, we will pay for advanced degrees in their entirety and freely invest in a set budget for anyone pursuing an undergraduate or a graduate degree.
JS: We maintain exceptionally high policy and premium retention rates and have achieved an underwriting profit in eight of the past ten years, alongside an operating profit in all of the ten years. Our education program, now in its sixth year and managed by a dedicated full-time leader, has played a significant role in this success.
More importantly, we are attracting new talent to PLM in part due to the program. I can’t recall a single instance where a candidate withdrew from the interview process because of our mandatory education requirement.
Additionally, we recently launched a succession plan built entirely around internal candidates, further demonstrating our long-term investment in developing and retaining top talent.
Guiding Insurance Toward a Smarter, Safer Future: Interview with Peter Miller, The Institutes President & CEO
By Skills Edge TeamNew technologies are transforming the risk management and insurance landscape at a rapid pace, and this ever-changing environment is pushing organizations to innovate alongside it. Peter L. Miller, CPCU, President and CEO of The Institutes recently sat down with John Weber from AM Best TV to discuss how AI, blockchain, and predictive technologies are reshaping risk management, enabling proactive loss prevention, and reinforcing the sector's ethical and educational foundation.
Check out a few highlights from this conversation below, and watch the full interview on AM Best’s website.
Peter Miller: It's changing a lot. We've talked for a long time about a concept we call the golden triangle, and that is really coming to fruition. The idea is that there's now more data, and you can have better access to it through cloud services. The source of data is increasingly Internet of Things (IoT) devices—sensors or other devices that feed a stream of data into cloud services—and then advanced analytics and AI that can analyze that data, make sense of it, and do things proactively.
There's a lot in the news about generative AI and different types of AI. That lives on data, and the ability to have more data and more computing power in these cloud services. The insurance sector is really starting to take advantage of that. What we're after is to be able to predict and prevent losses—because the best loss is the one that never occurs—so that we can provide better service to customers.
PM: I think it is in this predict and prevent capability—the ability to identify a risk and determine what we can do to avoid loss associated with that risk. There are all kinds of technology and startups that can gain insight and then take preventative action.
I've talked to several different startups. There's one called BurnBot that analyzes forests and other places where there's wildfire risk, and they'll do preventative targeted burns. It's a really cool idea because there are predictable patterns in how some of these fires spread. Another company called Faura is able to gain really detailed information through satellite images and provide a score for a particular property right down to the property level, along with mitigation recommendations.
We're now able to take much more detailed satellite images, combine them with data sources, and then get very specific on the risk for a particular property. There are also organizations that work with fire departments to identify risks in their area and help homeowners prevent or mitigate those risks.
It's really interesting because people are starting to focus on risk mitigation, which is extremely important as inflation causes replacement costs to go up, creating a protection gap. The future involves recognizing there's not enough premium to cover all potential losses, so we need to figure out how to mitigate losses before they happen. This creates a broader spectrum activity: risk management at the front end in the form of predict and prevent, and then indemnity to pay for losses when they occur. The combination of these two represents a real opportunity for insurance organizations.
PM: The Institutes RiskStream Collaborative is an organization we started some time ago to work on blockchain technology. As part of that cloud leg in the golden triangle, you have to be able to store data, use it securely, and then do something with it. RiskStream allows for a very secure way for companies to exchange data and integrate it into blockchain technologies called smart contracts.
Smart contracts can get a stream of data, interpret it, and take an action automatically. The smart contract sitting on a blockchain allows for more efficient exchange of data, but also enables parametric insurance—where you cover a risk based on some parameter. When that parameter, such as temperature or wind speed, gets above a certain level, claims are automatically paid. That reduces claim processing time and gets money into the hands of the policyholder faster.
Blockchain is an enabler of all those things. It's very secure. There are advantages going forward, both in terms of its ability to securely share data and then to execute things like parametric insurance.
PM: Yes, and in the economy as a whole. You're seeing stablecoin that's built on a blockchain, which is a medium of exchange that you'll start to see for commerce internationally. This technology has advanced to a point where it can handle transactions at a higher rate. The quality and robustness of that technology has improved considerably, and it's much more secure.
PM: I think that's partially because the tools are advancing at a really rapid rate and their ease of use. I see three ways that companies are using it. The first is office automation: summarizing an email or claim file or sending out personalized emails to all customers. AI can certainly do that.
The second is integrating AI into existing workflows. This is what I see most people doing. Where they had a non-AI tool, they're seeing they can get good returns by changing out and using different tools.
The third bucket is actual transformation. AI is going to continue to be integrated and accelerate. The capabilities and economics are such that it's going to be a compelling message, particularly in lines of business that are more commodity-based. You can certainly reduce your costs significantly.
PM: I'm very excited about the potential of generative AI. At The Institutes, we think it represents an opportunity for us to serve our customers. We teach ethics and hopefully can put an ethical mirror up to the RMI landscape saying, “These are great tools, but we're all here to help people, and we want to do that in an ethical way.”
I continue to be excited about the future of risk management and insurance because it makes people's lives better and safer. When we do that well, people can prosper and have better outcomes. Some of these new tools coming online could really help the RMI field achieve that objective. I get very excited about that.
The Institutes Introduce a New Designation to Meet Insurance Operations Challenges
By Skills Edge TeamAs operational models shift across risk management and insurance, carriers are increasingly turning to outsourcing partners to handle key back-office functions. At the same time, internal operations departments must adapt to meet rising expectations around speed, service, and accuracy. Across both environments, a shared need has emerged: the rapid development of insurance-specific operational expertise.
Risk & Insurance, which is affiliated with The Institutes, recently spoke with Diane Hanlon, Head of Sales and Market Development at The Institutes Knowledge Group, about what they are doing to address this need. You can read the original article on the Risk & Insurance website now.
To address this, The Institutes launched the Associate in Insurance Operations™ (AIO™) designation—a credential specifically designed to elevate workforce readiness for both insurance carriers’ internal operations teams and business process outsourcing (BPO) firms.
“Our research with more than 450 carriers and 65 outsourcing firms revealed an urgent need for standardized operational knowledge and faster employee ramp-up,” said Diane Hanlon.
The Associate in Insurance Operations designation was developed as a unifying solution, grounded in research that identified the specific skills carriers require from their operations staff—whether part of internal teams or outsourcing partners. It establishes a common standard of operational knowledge to support consistent training, enhance alignment, and promote greater efficiency across the extended insurance enterprise.
Key topics include claims and underwriting fundamentals, policy administration, and client service essentials, framed within real-world insurance workflows. The result is a practical learning experience that empowers internal teams to perform more efficiently and equips outsourcing partners with the knowledge carriers expect.
“Insurance operations professionals needed a designation that specifically addresses their unique role in the industry,” Hanlon explained. “While there are many excellent insurance designations available, there was a need for one that specifically targeted the operational knowledge required for efficient processing, enhanced client service, and streamlined workflow management.”
The Institutes Designations’ Associate in Insurance Operations is particularly suited for early-career professionals working in carrier operations, outsourcing firms, or brokerage support roles. It offers a targeted curriculum that develops both technical proficiency and essential soft skills, including critical thinking, analytical reasoning, and effective communication.
“Associate in Insurance Operations designees gain the ability to navigate policies, assess claims and applications with precision, and contribute to more seamless operations,” Hanlon added. “These are skills that translate into real business value—better service, fewer errors, and stronger reputation management.”
Designed with working professionals in mind, the AIO designation features a streamlined structure:
Each course takes approximately six to nine hours to complete. Most professionals can finish the program in three to six months, making it an efficient path to upskilling. Exams are delivered fully online, with 60-day testing windows offered throughout the year and discounted pricing for those who register early for the exam.
Upon completion, designees earn a diploma and digital badge that can be showcased across professional networks. Additionally, Associate in Insurance Operations coursework provides credit toward other Institutes Designations and may count for continuing education (CE) credits in most U.S. states.
“The Associate in Insurance Operations reflects our commitment to creating relevant, accessible solutions that meet the evolving needs of insurance operations,” said Hanlon. “It’s not just a credential—it’s a strategic asset for any organization committed to operational excellence.”
The Journey of Earning Every Institutes Designation: Interview with Jeff Barkley
By Skills Edge TeamIf you’re considering starting your professional development journey or earning your next designation, you might have a few questions. What kind of impact will it have on my career? Where should I start? Is it really worth the time and money?
We sat down with Jeff Barkley, a Large Loss Senior Manager, Adjunct Instructor at the University of Olivet, and completer of every single Institutes Designation as of September 2024 to discuss these exact questions. Jeff shares how his extensive education has helped him become a better leader, participate in initiatives across his organization, and improve his decision-making. Take a look!
Answer: There are a few reasons. The first designation I earned was the Associate in Insurance Services (AIS™) back in 2010. I started the designation at the University of Olivet, where I'm actually an adjunct instructor today, because they really encouraged students to pursue The Institutes Designations.
I had an economics professor who emphasized that he was going to cover a ton of information, and we would only remember 10% of it. One of the students asked, “What's the point if we're only going to remember 10%?” And I'll never forget his response: "Well, 10% of a lot is a heck of a lot more than 10% of a little.” That really stuck with me and shaped my view toward education. The things that resonate with you will help you connect dots in certain aspects of work.
My second designation was the Associate in Claims (AIC™), which I earned because of a dare. Then it became a little bit of an addiction. I made a bet with my director at the time, Renee. If I earned my AIC designation, she would promote me to Senior Adjuster. I don't think she thought I could do it so quickly. Long story short, I earned my AIC and received the promotion. And she never made a bet with me again.
A: It's definitely allowed me to participate in projects and initiatives that span core functions. It's given me the ability to speak the language of an underwriter, of a marketing professional, of a claims professional, and really connect those dots and communicate with the various areas within an insurance company. More importantly, it's helped me be a better teacher and a better leader.
With the depth and breadth of topics I've studied, I feel very comfortable positioning my team ahead of issues that I can see coming. As a very rudimentary example, I know that when we enter a hard market, underwriting is going to get a little more sensitive about risk referrals. Because I have that knowledge from what I've studied, I can keep my team ahead of the curve before the demands start rolling in.
A: My favorite designation to earn was the Associate in Reinsurance (ARe™). Really early in my career, I didn't understand the extent of the capital infrastructure that supports the insurance industry. That really fascinated me, and I'm still fascinated in that area. I like to joke that if I were to redo my insurance career, I might pursue reinsurance.
However, my most valuable designation is my CPCU. It really is the gold standard of designations out there. Of all the designations I've participated in and earned, the CPCU— early in my career, especially—unlocked my ability to participate in conversations, projects, and initiatives that spanned the core functions of an insurance carrier.
My career has been wholly in claims, but CPCU helped me see the insurance space through the prism of marketing, underwriting, and claims. And that helped me take part in a lot more than I was able to prior to earning that designation.
A: That's a really tough question to answer, and I know a lot of other students can identify with that. It really depended on the season of life. While I was doing all of these designations, I also got married. I had four kids. I completed a master's degree. I changed employers three times and just had a lot of life in between. As I got toward the end, there's a couple that I did in just a matter of weeks because I had so many overlapping credits. But some took me months, if not up to a year to finish. The main thing is to never let your circumstances get in the way of your aspirations.
A: I've worked for employers who have paid for designations, and I've worked for employers who encouraged us to invest in ourselves. And I understand both of those arguments. I won't pick one over the other, but I'll say to anybody that reads this: if you have an employer who is willing to invest in you—and even pay you for the performance increase that comes out of you learning new material—that's a really awesome gift.
But even if they don't, you should still consider investing in your own development because it won't return to you void. In hindsight, even though I've had employers pay for some of my designations and I've paid for some of them out of my own pocket, I would happily have paid for all of them. It's done that well by me.
A: Thank you to The Institutes and what you do to help educate our industry. We have an ageing workforce, and I find it very encouraging to know the quality of the material that's out there. It helps me as a leader and helps those across the RMI landscape gain the necessary knowledge to better serve people, because that's what we're here for.
The Institutes Launches a New Cyber Risk Management Designation
By Skills Edge TeamIn recent months, numerous surveys of business leaders have reported that one of their top concerns, if not their top concern, is the issue of cyber security. In many cases, small businesses that suffer a cyber event fail to recover from it. Even for larger businesses, the fallout from a cyber hacking or phishing event can be punishing financially.
Risk & Insurance, which is affiliated with The Institutes, recently spoke with Adam Carmichael, CPCU, the President of The Institutes Knowledge Group, about a new Institutes Designation. You can read the original interview on the Risk & Insurance website now. The Associate in Cyber Risk Management™ (ACRM™) is intended to bolster the knowledge and effectiveness of risk managers and risk-transfer professionals in this very important area of the insurance sector.
You can also try out a free sample course (about 30 minutes of content) to learn a little more about cyber risk and the scope of the program. What follows is a transcript of Risk & Insurance’s discussion with Mr. Carmichael, edited for length and clarity.
Risk & Insurance: In terms of your new cyber designation, which segments of the risk management and insurance profession is this course built for?
Adam Carmichael: I think a lot of times when people hear cyber, they immediately jump to IT. But really, cyber risk is an enterprise risk.
This new designation is focused on professionals such as the risk manager, the underwriter, the broker; various roles that have to manage cyber risk, to better equip them with a framework of how to do so.
R&I: How long did it take to pull the structure and the resources together to create this new designation?
AC: We worked on the program for several months. We talked to various practicing subject matter experts in the field to gather what are the most important things, what are best practices, to make sure we’re putting all of that in the courses, and in the program.
R&I: If I was going to take this course and get this designation, how much time should I set aside to do so?
AC: The designation has 3 main courses. It also has a short ethics course that goes with all of our designations. But with the 3 main courses, for most people, you could complete the entire program within 6 to 9 months if you’re doing a few hours of study each week.
R&I: As we know, cyber risk is a complex topic. As your team was putting together the materials, what were you trying to address in terms of knowledge gaps that you thought you could help professionals with?
AC: It is a complex topic. I think from that perspective, first, what we want to do is help people develop a plan or a strategy, a holistic approach on how to manage cyber threats.
That’s everything from identifying cyber-related risk exposure to understanding downstream impacts such as potential revenue loss, that could stem from a cyber event. Of course, the best course is to prevent these events.
We want to predict and prevent wherever possible and at least mitigate any losses. But we also want those that take the course to know what options are available for cyber coverage. It is an area that’s still evolving, but there are some key aspects to be able to understand what is and what is not covered, and to be able to plan accordingly.
R&I: That’s going to be an ongoing learning curve, isn’t it, in terms of what’s happening with coverage, exclusions and insurance capacity?
AC: No doubt. In some cases, the coverage is an endorsement of a certain policy. In other cases, it’s a cyber-specific policy. So we really do encounter a lot of variety there.
R&I: I assume you got a good deal of feedback or communications from risk professionals saying, “Hey. We could really use some help here.”
AC: We certainly heard directly. We also have an advisory board that we communicate with on the nuances of cyber risk and cyber coverage. Then added to that, we do look at independent research as well, to see what is top of mind for companies, and where the needs are.
Just to list a few statistics: A recent Munich Re survey showed that 87% of C-Suite-level executives said their company is not adequately protected against cyber risks or cyber-attacks. That’s a big number.
When we started talking about having a strategy and a holistic plan for how to manage that risk, it was the scope of that business leader concern that we were trying to address.
Similarly, the International Insurance Society, which is affiliated with The Institutes, conducts a Global Priority Survey in which 62% of executives polled said cybersecurity was their top priority. So again, very top of mind for business leaders. And this wasn’t just for large companies, either.
Cyber risk, as you know, applies to companies as well as individual risks, which we do address in the program as well. It’s startling, but 60% of small businesses close within 6 months of a cyber attack. Yet, despite these risks, about two thirds of small businesses lack any cyber insurance coverage.
R&I: When you think about this, is there anything about the topic, Adam, that I didn’t ask you about that you’re particularly passionate about that you wanted to get across to the readers?
AC: What I’m passionate about is that cyber risk is one of the largest threats that organizations of all sizes face. It’s not hard to not see it in the news or be impacted personally. Data breaches happen; that’s the interconnected world that we live in. It’s a data-driven world and cyber risk is very real. Our hope is that this designation is going to really help learners; help both them and their customers better manage cyber risk.
Why Become a CPCU? Interview With Kelsey Connors, CPCU
By Skills Edge TeamYou may have been asking yourself, is CPCU worth it? We definitely think it is, but don’t just take our word for it! Over 90,000 RMI professionals have invested in themselves to become CPCUs, and today we’ll hear from one of them about how earning her CPCU has impacted her career.
We sat down with Kelsey Connors, a Policy & Performance Underwriter at USAA, to talk about the benefits earning her CPCU has had on her professional development. Kelsey shares how she’s been able to improve her communication about complex topics, expand her professional network, and grow her career. Read on!
Answer: I wanted to get into the underwriting path, and I knew I would ultimately need my CPCU, as it’s required for most of those roles. Plus, I wanted to learn more about the industry in general. CPCU gives you a lot of broad knowledge, whether it's in personal lines, commercial lines, different types of contracts, or even life insurance and health insurance. It really gives you a well-rounded education that you can only get at The Institutes.
A: In my previous role, I often communicated with company members directly on our chat channel. A lot of the discussions would be about servicing. For example, rates are a common discussion, especially in today's climate with the rate increases going on. After earning my CPCU, I was able to better explain that process and what goes into reviewing and analyzing rates. You learn a lot more behind the rate making process, what different carriers have to analyze, and the different types of ratios that the company is looking at. Just knowing that information helped me communicate better with members at my company.
CPCU also helped me easily segue into my current underwriting role. Because this is a completely new department, a lot of what I’m doing is different than what I'm used to. However, I’ve already had some of that background in the CPCU courses, whether it’s learning about how actuaries are calculating, what they're looking for in risk reviews, etc. My designation has helped me a lot, but the main benefit is helping educate others about it, too.
A: I've really tried to get involved at my company and become a voice for CPCU. I've encouraged my peers to look into the designation while answering questions about it because I think it's one of the most valuable tools you can get working in insurance. For me, CPCU has been even more valuable than my degree. It helped set me up for future roles and my current role that I really wasn't able to get prior.
CPCU helped my career path a lot and I want to help express that to others. For example, we have professional designation talk rooms where we chat with different people about what they're studying, and my goal is to help continue to educate about CPCU. Plus, I’m on the membership committee for The Institutes CPCU Society, which has helped me learn things I never knew before, like that students can join through the Pathways membership. In general, I think there's a lot of opportunity to get more people involved.
A: It feels exciting because it's a very prestigious credential in the industry. Looking at insurance professionals as a whole, less than 10% have their CPCU designation. I feel more accomplished; I took it upon myself to go through the process, and I've done something that most might not have pursued.
Plus, I’ve been able to make a lot of new connections. I went to In2Risk in November in San Francisco where I met a lot of great people, either from my company or at other carriers. Being able to network with different people and attend local chapter events made me feel more included in the insurance community. All of that is what I've enjoyed the most from earning my CPCU.
A: I'm a CPCU because I want to know the most about insurance and be a part of a great community. I highly encourage anyone out there to obtain their CPCU. It really is worth the time that you put into it, and you gain so much more than you think you will at the end of the process.
So, is CPCU worth it? It was for Kelsey and thousands of others who’ve used their designation to leverage new networking opportunities and career advancement. The Institutes Designations' CPCU® is the leadership standard in risk management and insurance for a reason, and those who embark on their CPCU journey will gain practical leadership expertise, credibility, and valuable skills they’ll use for the rest of their RMI career.
Hear more from Kelsey in this video, and get started on your CPCU journey today!
Innovative Risk Management: Shifting To A Predict & Prevent Approach
By Skills Edge TeamIn today's rapidly evolving insurance landscape, staying ahead of the curve is not just a strategy but a necessity. Embracing innovation has become essential for navigating uncertainty. But what defines innovative risk management, and how is technology driving the shift toward a predict and prevent approach?
Innovative risk management extends beyond reactive measures to address potential threats; it involves anticipating them proactively and leveraging technology that enables prediction and prevention. This strategy moves beyond conventional risk mitigation approaches by identifying and addressing risks before they escalate into crises.
To adopt an innovative approach to managing risk, individuals and organizations must lean into experimentation and continuous learning. It’s also important to stay current on advancements in the risk management and insurance field and invest in the right solutions to anticipate and respond to risks proactively.
The shift to a predict and prevent approach is at the center of innovative risk management and will help revolutionize the way society approaches risk. It’s a model that makes sense for all parties involved:
The traditional detect and repair model is being challenged by one that uses technology to predict and prevent losses from ever happening in the first place.
Organizations are now equipped with cutting-edge analytics and predictive algorithms, giving them the power to foresee and prevent potential threats before they become serious issues. This proactive stance isn’t just about minimizing risks; it’s about protecting safety, assets, and reputation.
A major advantage of these technological advancements is the efficient gathering and analysis of large amounts of data. Through real-time data processing and predictive modeling, predicting emerging threats and anticipating risks will become more efficient.
There are many new approaches for leveraging technology to predict and prevent losses. For example, Whisker Labs has developed an innovative device being deployed to millions of U.S. homes that's proven to prevent 80 percent of home electrical fires. And Betterview deploys a property intelligence platform that can score various property risks.
Peter Miller, CPCU, President and CEO of The Institutes, deep dives on both of these innovative risk management technologies on episode 2 of the Predict & Prevent™ Podcast. Through conversations with insurance experts, the podcast sheds light on how technology and resilience techniques are being used to prevent losses before they occur.
For those interested in staying current on advances in technology, successful initiatives, and emerging trends in risk management, be sure to subscribe to Predict & Prevent wherever you get your podcasts.
Keeping ahead of risks is key to staying resilient in uncertain times. By embracing technology and continuously upskilling employees, organizations can proactively predict and prevent risks, boosting their resilience and ensuring success into the future. This not only minimizes potential disruptions but also fosters a culture of innovation and adaptability, leading to sustained growth and competitive advantage.
To navigate today's risks effectively, it's vital for individuals and businesses to fully embrace these innovative strategies. Investing in technology-driven methods and proactive risk management not only safeguards assets and reputation but also fosters a safe and resilient culture.
Professionals looking to gain strategic risk management skills and remain competitive in the evolving shift from detect and repair to predict and prevent should explore The Institutes Designations' Associate in Risk Management (ARM™). ARM equips individuals with the knowledge and expertise to navigate today's complex risk landscape effectively through a holistic and strategic understanding of risk assessment and treatment. You can even try ARM and see if it's right for you with this free sample course!
